The following information was obtained from in an audit of cash of the Buttfuski Alcohol Distribution Company as of 12.31.21 1. Bank reconciliation at 11.30.21: Balance per bank statement $19,400 Deposits in transit $1,100 Outstanding checks: #2540 $140 #1501 $750 #1503 $580 #1504 $800 #1505 $30 Balance per books $18,200 2. Summary of the bank statement at 12.31.21 Balance brought forward $19,400 Deposits $148,700 Charges $132,500 Balance 12.31.21 $35,600 3. Summary of the general ledger at 12.31.21 Balance brought forward $18,200 Receipts $149,690 Disbursements $124,885 Balance $43,005 4. Buttfuski discounted its own 60 day note for $9,000 with Keybank on 12.1.21, the discount rate was 6%. The Canisius grad recorded the proceeds as a cash receipt for the face amount of the note. 5. The accountant records customers dishonored checks as a reduction of cash receipts. When the dishonored checks are redeposited, it is recorded as a regular cash receipt. 2 NSF checks for $180 and $220 were returned by Keybank during December and both were redeposited 6. December bank charges were $20. Also a $10 was made in December for a foreign draft in November. These charges have not been recorded 7. Check #2540 listed in the November outstanding checks was drawn is 2020. The payee cannot be located and the president agrees with your suggestion that the check be written back into the account. 8. Outstanding checks at 12.31.21 amounted to $4,000 excluding checks # 2540 and #1504 9. The cutoff bank statement disclosed that the bank had recorded a deposit of $2,400 on 1.2.22. The accountant had recorded this deposit on 12.31.21 and mailed it to Keybank

10. Some special checks need mention: Number Date Amount Comment 1501 11.28.21 $75 Payment for an invoice for $750, was recorded as $750 in general ledger 1503 11.28.21 $580 Payment for an invoice for $580 and was recorded as $580 in general ledger 1523 12.12.21 $150 You noted this check was not signed. It was endorsed and deposited by the payee and processed by Keybank even though it was a legal nullity. Bank check 12.12.21 $200 Bank check drawn at the bank by the company president as a cash advance for his medical alcohol consumptions. He overlooked telling the about the check Bank check 12.20.21 $300 The drawer of this check was the Blowfish Company 1528 12.20.21 $800 This check replaced check # 1504. Because the payees dog got at it. Check # 1504 was not cancelled in the general ledger 1535 12.20.21 $350 Check was labeled NSF and returned to the payee because Keybank erroneously believed the check was drawn by the Truckfuski Company. The payee was advised to redeposit the check 1575 1.5.22 $10,000 This check was given to the president on 12.30.21 as a postdated check with the understanding that it would not be deposited until January 2022. It was not recorded on the general ledger in December 2021